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In our continued effort to keep our clients up to date, we would like to remind you about changes to the Coronavirus Job Retention Scheme (CJRS) from this month (September 2020) and what this means for you.

What you will still need to do if you are using this scheme:

  • Continue to pay furloughed employees 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. Employers will need to fund the difference between this and the CJRS grant themselves.

  • From September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

  • The caps are proportional to the hours not worked. For example, if an employee is furloughed for half their usual hours in September, employers are entitled to claim 70% of their usual wages for the hours they do not work up to £1,093.75 (50% of the £2,187.50 cap).

  • Continue to pay furloughed employees’ National Insurance and pension contributions from your own funds.

Other points worth a reminder:

  • Claim periods cannot overlap calendar months and you cannot claim for employer NIC or employer pension.

  • The Job Retention Scheme is still due to end 31st October.

  • You can still use flexible furlough but must not claim for the proportion of hours worked in the period they are claiming for.

Full details on the Job Retention Scheme can be found on the UK Government Job Retention Scheme page

Specialist support from Hentons

We have specialists dealing with the specific reliefs and issues being faced by our clients. Please feel free to contact the relevant areas of expertise:

  • For all Payroll queries, including the Job Retention Scheme and SSP email Jess Haunch

  • For all VAT and Tax queries, including time to pay for all taxes Greg Langley

  • For all Business Interruption Loan Scheme queries please contact Tim Baum-Dixon.